House Bill 81 aims to regulate the use of vehicle telematics by insurance institutions and agents in North Carolina. The bill mandates that these entities must provide notice and obtain written consent from applicants or policyholders before collecting, using, or sharing vehicle telematics data. Additionally, it allows individuals to revoke their consent at any time, requiring institutions to facilitate this revocation within 24 hours. The bill also establishes penalties for violations, categorizing them as unfair trade practices under existing state laws.
If enacted, HB81 will amend Article 39 of Chapter 58 of the North Carolina General Statutes, introducing stricter controls on how insurance companies handle telematics data. This change is expected to enhance consumer privacy and give individuals greater control over their personal data, particularly in the context of insurance underwriting and pricing decisions. The bill's provisions will apply to all contracts issued, renewed, or amended after its effective date of October 1, 2025.
The general sentiment surrounding HB81 appears to be supportive among consumer advocacy groups who emphasize the importance of privacy and consent in data usage. However, there may be concerns from insurance companies regarding the operational implications and potential costs associated with implementing these new consent requirements.
Notable points of contention include the balance between consumer privacy and the operational needs of insurance companies. Some stakeholders argue that the consent requirements may complicate the underwriting process and lead to increased costs for both insurers and policyholders. Others emphasize the necessity of protecting consumer data in an increasingly digital world.